Support for a Modern Gold Standard Continues to Grow Globally

For quite some time now, there have been rumors regarding a new gold standard. It is painfully evident the current financial ecosystem cannot be sustained. As more measures are taken in lieu of COVID-19, demand for financial stability will only increase further. 

A new Gold Standard is Beneficial

Looking at the way things are going financially, it is evident something needs to change. Ongoing stimulus packages are being issued left, right, and center. A solution in times of dire need, but not one that should be used time and time again. Printing new money will always come at a cost, and a rather steep one at that.

The main reason why stimulus packages exist is the broken financial system. More specifically, the introduction of fiat currencies in their current form has been problematic since day one. As more and more countries adopted these systems, the point of no return was reached decades ago. Today, the shortcomings and weaknesses of this system are clearly visible.

Things did not have to turn out this way. There was a working system in the form of the gold standard. Abolishing it was, and still is, a terrible idea. As time progresses, more countries explore the option of reinstating this standard in some shape. 

In theory, it is not too difficult to do so either. Most countries have significant bullion reserves today. There is a need for a monetary reset, and it needs to happen right now. As all of the inflated bubbles making up traditional finance come together, very serious issues will become apparent.

Transitioning Will be Difficult

Switching from the current system back to the gold standard is not straightforward. It can be done, but will certainly require a different mindset altogether. One also has to acknowledge that a new gold standard can exist in different iterations. It doesn’t have to mimic the traditional version either. 

Banks are still able to maintain a certain degree of freedom in this regard. They can peg national currencies to the gold standard via “targeting“, instead of sticking to the actual face value. An interesting approach, especially with numerous currencies facing hyperinflation and devaluation today. 

It will be interesting to see what the future holds exactly. The current rate at which things are going will simply not work. People need to be more vocal about what they want to see changed, if anything. Otherwise, things will always remain the same as they are now. 

The post Support for a Modern Gold Standard Continues to Grow Globally appeared first on Vaultoro, buy gold with bitcoin.

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